Cash flow refers to the movement of cash over a particular time period within a business or enterprise. The calculation of cash flow may be used as one measure to gauge financial health of the business. Managers in charge of cash flow management may use various tools to assist in making decisions involving cash flow.
A starting point for proper cash flow management involves use of cash flow projections. Accurate cash flow projections enable business managers to make proper decisions regarding day-to-day operations and long-term strategic decisions such as investment decisions.
Good cash flow projections involve using up-to-date accurate data regarding inflows and outflows of cash over a period of time. These projections which may be in the form of cash flow statements involve estimation of operating cash flow. However, timely up-to-date data concerning operating cash flow is difficult to obtain in large retail operations. In large retail operations, accurate cash flow data may not be known until business close, as an accounting of each cash register's drawer has to be completed and reported to a corporate back office.
For example, a multi-store grocery chain may have multiple cashiers at each store handling numerous customers during a business day. When each store closes or at the end of the cashier's shift, each of the cashiers may have to tally in their cash register so that a final tally may be determined each store closing. At certain time of day the result may be forwarded to a central office which may be used to calculate cash flow for the grocery chain
At particular scheduled times which may range from daily to once every few days or longer, an armored car or other means of transportation may be arranged such that cash receipts from the day or some other period of time may be picked up and transferred to a financial center or branch for deposit. Upon delivery to the financial center, cash may be deposited and may be made available for use by the business in another one to four business days.
Therefore, a need exists for a method, apparatus, and system for calculating and allowing use of cash flows for a business or enterprise in real-time. The calculation of real-time cash flows may enable mangers with cash management responsibilities to make informal business decisions regarding use of cash during the same business day for the entire enterprise.